Norsk Hydro's Share Buyback Program: A Strategic Move for Shareholder Value
Wednesday, Sep 25, 2024 6:05 am ET
1min read Norsk Hydro, a leading global aluminum and renewable energy company, has initiated a share buyback program to reduce its share capital and enhance shareholder value. The program, authorized by the company's Annual General Meeting held on May 7, 2024, aims to purchase up to 100 million shares with a maximum value of NOK 2,000 million, equivalent to approximately 1.8% of the market value of the share capital at the current share price level.
The buyback program, set to commence on September 11, 2024, and planned to be finalized by February 28, 2025, aligns with Norsk Hydro's long-term financial strategy. By reducing the number of outstanding shares, the company aims to increase earnings per share (EPS) and return on equity (ROE), ultimately enhancing shareholder value. Additionally, the program demonstrates the company's confidence in its financial position and future prospects.
Norsk Hydro has engaged Citigroup Global Markets Europe AG to manage and carry out the share repurchases in the market. Citigroup will make its trading decisions independently of, and uninfluenced by, Norsk Hydro, ensuring compliance with the Market Abuse Regulation (EU) No 596/2014 (MAR) and Commission Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation).
The company has agreed with the Norwegian State to redeem its shares on a pro-rata basis, ensuring that the Norwegian State's ownership remains unchanged when shares are cancelled. This agreement further demonstrates Norsk Hydro's commitment to maintaining a balanced relationship with its shareholders.
As of September 18, 2024, Norsk Hydro has purchased a total of 1,038,589 shares, corresponding to 0.75% of the company's share capital. The weighted average share price per day during this period was NOK 59.09, with a total transaction value of NOK 61,373,610.
The share buyback program is expected to have a positive impact on Norsk Hydro's share price and market capitalization, as well as its EPS and ROE. By reducing the number of outstanding shares, the company aims to create value for its shareholders while maintaining a strong financial position. The program also demonstrates Norsk Hydro's commitment to responsible corporate governance and shareholder engagement.
The buyback program, set to commence on September 11, 2024, and planned to be finalized by February 28, 2025, aligns with Norsk Hydro's long-term financial strategy. By reducing the number of outstanding shares, the company aims to increase earnings per share (EPS) and return on equity (ROE), ultimately enhancing shareholder value. Additionally, the program demonstrates the company's confidence in its financial position and future prospects.
Norsk Hydro has engaged Citigroup Global Markets Europe AG to manage and carry out the share repurchases in the market. Citigroup will make its trading decisions independently of, and uninfluenced by, Norsk Hydro, ensuring compliance with the Market Abuse Regulation (EU) No 596/2014 (MAR) and Commission Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation).
The company has agreed with the Norwegian State to redeem its shares on a pro-rata basis, ensuring that the Norwegian State's ownership remains unchanged when shares are cancelled. This agreement further demonstrates Norsk Hydro's commitment to maintaining a balanced relationship with its shareholders.
As of September 18, 2024, Norsk Hydro has purchased a total of 1,038,589 shares, corresponding to 0.75% of the company's share capital. The weighted average share price per day during this period was NOK 59.09, with a total transaction value of NOK 61,373,610.
The share buyback program is expected to have a positive impact on Norsk Hydro's share price and market capitalization, as well as its EPS and ROE. By reducing the number of outstanding shares, the company aims to create value for its shareholders while maintaining a strong financial position. The program also demonstrates Norsk Hydro's commitment to responsible corporate governance and shareholder engagement.
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